The financing needs for home business ventures vary greatly. Some businesses can be started with a few hundred dollars, but there are those that may require thousands of dollars. You could choose to invest your own money or seek funds from an external source, or you may choose to use both.
If your intention is to obtain finance from an external source, you should be prepared. Before you approach anyone for finance, ensure that you have the following available.
• A clear, well prepared, detailed business plan
• Obtain a personal credit report to avoid any nasty surprises
• Any other documentation that you think the investor or financial institution might require, such as bank statements, address verification and personal identity documents
Personal Funds
If you intend funding your business personally and you have sufficient savings in the bank, you are ready to go. If you do not have enough funds available, you should consider getting rid of unwanted items that you probably will never use.
Do not use your children’s education funds or any of your retirement funding. There are too many risks involved with this and if your business fails, you will not be able to make up that fund again.
Small Business Administration (SBA) Loans
This is a U.S. government funded agency that offers small business support. The loan programs are available via private money lenders, but are guaranteed by the Small Business Administration.
Bank Loans
It is possible to obtain a personal loan from your bank. There are advantages and disadvantages linked to this type of loan and you should do your homework before you make an application. A personal loan holds you personally liable for the amount of the loan and this puts your assets at risk. This could affect your family if your business fails and you own your home. The bank will have the right to attach your home. In the event that you have a partner involved in your business, the bank may have the option to attach your assets if it carries a larger value.
Micro Lenders
If you have made application to your bank and been rejected, you may be able to obtain funding from a micro lending organization. These are non-profit organizations that offer small loans to small businesses. There are certain criteria you have to meet to qualify for this type of loan.
Credit Cards
This is not a suitable option to fund your business. It should only be used as a last resort. The interest rates are extremely high on credit cards and your credit limit may be reduced without prior warning from the institute that holds your account.
This form of financing can be used if you require equipment to start your business as it is an easy option to obtain the tools to make money. If you use this option you should ensure that you repay the amount as soon as you are able to as the interest will not justify the cost.
Finance for your home business should ideally come from your own pocket. If you intend starting a business that is capital intensive, you should do suitable calculations to ensure that you do not end up with debt you are unable to repay.
Home Business for Moms
Are you a stay-at-home mom who is considering starting a home business? It is always nice to have a way to bring in an income even though you have to stay home with the kids. However, it can be challenging figuring out what to do when you want to work from home. Here are a few ideas to consider.
Virtual Assistant
There are always entrepreneurs who are looking for someone to do home office work for them from home. You can offer your services as a virtual assistant to help out with a busy person’s administrative, marketing and technical tasks.
Freelance
No doubt there is some skill you are really good at that someone else needs help with. You can market this ability by working as a freelance in the field. There are online sites that let you hook up with requesters to do transcribing, web design, or any other work you can provide. You can also advertise locally or put up flyers at a nearby college.
Blogging
Many people are finding they can earn an extra income simply by writing about things they love on the Internet. You can start a blog about fashion or food, and add affiliate marketing and advertising links to your page. As your blog gains more interest, your passive income will increase.
Child Care
You are staying at home taking care of your own children anyway, so why not add a few more kids and make some money while you’re at it? You need to be careful that you learn about all the local regulations governing in-home day cares, but this can become an enjoyable source of work-at-home income for you while providing your kids some playmates.
Online Store
Are you crafty? Do you have some type of product that you make and could sell online? You might want to consider opening an online marketplace to sell your items to the public. It is not that difficult to set up a site, and sometimes you can get the site and hosting for free or less than $10 a month. Spread the word on social networking sites, and visitors will come to check out and buy your crafts.
Share Your Creativity
If you have a particular knack for home decorating or organizing, perhaps you can market those services to others. You have natural talents that you have honed, so why not turn them into a business? Teach others to cook or reorganize their kitchens for them. You will be very popular providing these types of services, and word-of-mouth can garner you new clients.
Working from home is an ideal solution for mothers who want to spend most of their time with their children. There are lots of creative ways to start a home business if you just use a little imagination and initiative. Assess your skills and abilities, and look at what various websites have to offer. No doubt, you will find there are several avenues you can pursue to establish your own home business.